Labor market in Bhutan

Bhutan’s labour market includes formal jobs, private business, farming, self-employment, unpaid family work and other economic activity, not only payroll employment. The National Statistics Bureau measures it through the Labour Force Survey, while the Ministry of Industry, Commerce and Employment uses the Bhutan Labour Market Information and Management System (BLMIS) and the Employment Responsibility System (ERS) for vacancies, matching and employment programmes. The Royal Civil Service Commission recruits separately for civil-service positions, so civil-service recruitment is not fully represented in BLMIS. The 2025 Labour Force Survey covered 11,686 households and 41,912 people across all 20 Dzongkhags in four quarters. Among people aged 15 and above, 608,121 were of working age, 394,937 were in the labour force and 381,584 were employed. The labour-force participation rate was 64.9%, the employment-to-population ratio was 62.7% and the unemployment rate was 3.4%. Unemployment was higher among young people aged 15 to 24 at 18.0%, while long-term unemployment was 0.8%. The survey counts a person as unemployed when they have no work, actively searched during the previous four weeks and are available to start within the following two weeks. Agriculture, forestry and fishing accounted for 43.6% of employment, services for 42.2% and industry for 14.2%. Agriculture represented 64.0% of rural employment but only 4.0% of urban employment. Services represented 78.1% of urban employment and 23.7% of rural employment. Major activities included agriculture with 166,450 workers, wholesale and retail with 34,852, public administration and defence with 33,036, manufacturing with 24,459, education with 23,160, construction with 21,617, accommodation and food services with 18,440, and transportation and storage with 17,666. Information and communication technology employed 2,885 people, while professional, scientific and technical activities employed 1,417. Location changes the available work and the way people earn income. Rural residents made up 62.4% of the working-age population and 65.1% of the labour force. Labour-force participation was 67.7% in rural areas and 60.3% in urban areas. Thimphu had the country’s largest labour force, with 78,546 people, including 67,101 in Thimphu Thromde. Within the Thromde labour force, Thimphu accounted for 73.8%, Phuentshogling for 14.0% and Gelegphu for 7.9%. Labour-force participation was highest in Gasa at 77.4% and lowest in Bumthang at 57.9%; Thimphu recorded 58.1%. Urban unemployment was 6.0%, compared with 2.0% in rural areas, and female unemployment was 4.5%, compared with 2.6% for men. Occupations also differ by place. Skilled agricultural, forestry and fishery workers represented 43.2% of employment. In urban areas, service and sales workers represented 27.9%, professionals 15.6% and technicians 13.2%. In rural areas, skilled agricultural, forestry and fishery workers represented 63.6%. By employment organisation, farming accounted for 43.2%, private business for 30.3% and government agencies for 15.1%. Regular paid employees represented 33.4% of workers, agricultural family workers 24.1% and agricultural own-account workers 19.0%. In rural areas, 46.7% of women were agricultural family workers, while regular paid employment represented 64.3% of urban employment. Education and skills affect both access to work and the type of work available. Among employed people, 35.1% had no formal education; the share was 43.0% for women and 29.7% for men. In urban areas, 23.9% had completed higher secondary education and 15.0% held a bachelor’s degree. Unemployment was 8.9% among people with higher secondary education and 8.8% among bachelor’s degree holders, showing that qualifications alone do not guarantee a suitable job. Skills responses include technical and vocational education and training, dual training, on-the-job training, industry attachments and career counselling. Skill mismatch, limited private-sector absorption and the underrepresentation of women in technical and infrastructure roles remain labour-market challenges. Jobseekers can register through BLMIS or receive services through Employment Service Centres in Thimphu, Phuntsholing, Gelegphu, Samdrup Jongkhar and Trashigang. Registration requires a CID, valid email address and contact details together with qualification information. Services include career guidance, CV and interview support, vacancy information, referrals, placement, training and entrepreneurship support. BLMIS may not capture informal or unregistered work and excludes formal civil-service cases handled through the Royal Civil Service Commission. The Employment Responsibility System operates under the 13th Five-Year Plan for 2024–2029 and uses the 3P approach: Prepare, Promote and Place. In financial year 2024–25, it recorded 8,274 placements, including 1,334 through the Overseas Employment Programme. Private-sector placements accounted for 86%. The tracked BLMIS appointments included 6,940 appointments, of which 5,261 were active, 1,526 had ended through resignation and 125 through termination. Placements were concentrated in Thimphu with 2,695, Chukha with 1,204, Samtse with 733 and Paro with 684. Employment programmes also included private engagements lasting one to twelve months, 210 internships and 378 social or nonprofit placements lasting up to 24 months. Self-reported mean monthly income in 2025 was Nu. 24,909 and the median was Nu. 20,000. The mean was Nu. 27,268 for men and Nu. 20,397 for women; the median was Nu. 23,000 for men and Nu. 15,000 for women. Urban mean income was Nu. 30,708, compared with Nu. 20,554 in rural areas. Mean income was highest in Paro at Nu. 31,997 and lowest in Samtse at Nu. 17,564. The mean working week in financial year 2024–25 was 49 hours. The official minimum-wage circular located for general application sets Nu. 125 per hour or Nu. 3,750 per month from 1 February 2014, but its current application should be checked before relying on it. National Workforce Wage Rates revised in 2023 apply to Bhutanese workers on direct government works and range from Nu. 400 to Nu. 600 per day depending on category; these rates do not represent the entire private labour market. Employment quality is governed by the Labour and Employment Act 2007 and the Working Conditions Regulations 2022. Employers should provide a written employment contract and a copy to the employee. The contract covers matters such as duration, duties, notice, wages, working hours, probation and leave. The standard maximum is eight hours per day and 48 hours per week. Overtime requires mutual agreement and is limited to 12 hours per week; night work and public-holiday work attract an additional 50%. Daily rest is 12 hours and weekly rest is 24 hours. After 12 months of continuous employment, paid maternity leave is at least two months, and paid paternity leave is at least ten working days. Enterprises with at least 12 employees must have a workplace grievance procedure. The Department of Labour and labour inspectors handle enforcement and labour standards. Foreign workers are a significant part of labour supply, especially in construction and related trades. In financial year 2024–25, 151,646 foreign workers were approved; 126,630, or 83.5%, worked in craft and related trades, and 13,570, or 8.95%, in elementary occupations. Foreign employment requires approval from the Chief Labour Administrator and is permitted when Bhutanese workers are unavailable or unwilling for the work. The system uses approaches such as the Critical Skills Shortage List, sector-based quotas, need-based and case-by-case approval, and a dependency-ratio ceiling. The Department of Labour and the Department of Immigration share responsibilities, with online processing through the Foreign Worker Management System, immigration checks, medical screening and electronic permits. Outbound employment is another part of Bhutan’s labour market. The Overseas Employment Programme recorded 1,334 placements in financial year 2024–25, including 846 women and 488 men. Under the Regulation for Employment of Bhutanese Overseas 2026, jobseekers must register with the Department of Employment and Entrepreneurship. Placements use approved countries and occupations through a Registered Bhutanese Overseas Employment Agent or the Department. The target is placement within 90 days of an offer, with one possible 30-day extension. Placement fees may not exceed one month of basic salary and are split between the offer stage and confirmation of the air ticket. The employment contract should state wages, overtime, transport, meals, accommodation, qualifications, worksite, medical or health insurance, repatriation and emergency arrangements. Outmigration is particularly relevant for younger and more highly educated workers and can affect human capital and service delivery. Bhutan’s labour market is changing through private-sector diversification, tourism and services, manufacturing, construction, mining, renewable energy, information and communication technology, and green infrastructure. Hydropower remains a major growth driver. Quarterly labour-force data, stronger links between education and employers, improved BLMIS and Employment Service Centre services, regional decentralisation and better access for women to technical work help show where labour demand and supply are moving. The exact answer to a work question depends on the Dzongkhag or Thromde, sector, qualification, employment status and whether the work is formal, informal, domestic or overseas.